Update on the Minimum Wage Review

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The 2010 Employment Rights Ordinance prescribes that the Minimum Wage must be reviewed on an annual basis. The Minimum Wage review is undertaken by the Employment Rights Committee (ERC) who is required to consider the effect of any recommendations on the economy as a whole. The review takes into account a number of factors such as views received during the consultation period, current economic conditions, including inflation, and any changes to Income Related Benefits (IRB) that have occurred since the last Minimum Wage review.

The annual review of the Minimum Wage typically begins in October with any changes announced before the end of December to take effect from 1 April of the next year. The three-month notice period is intended to allow employers adequate time to plan for implementation of any increase to the Minimum Wage.

Due to the ongoing review of the Minimum Income Standard (MIS), the ERC has elected to defer review of the Minimum Wage by one quarter. Because the MIS is one factor considered when setting a Minimum Wage, the ERC believes it is important to have the outcome of the MIS review prior to making recommendations related to the Minimum Wage. The ERC expects to begin review of the Minimum Wage in January to include a consultation period, with any changes announced before the end of March to take effect from 1 July 2021.

The Minimum Wage per hour is currently £3.18 for persons over 18 and £2.23 for persons aged 16 or 17. This rate will remain in effect until 30 June 2021.

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SHG

19 October 2020

St Helena Government Communications Hub

Telephone: 22470
Email: kimberley.peters@sainthelena.gov.sh